Rising costs of living and medical care is causing Hong Kong’s aging population to grow increasingly discerning in the choice of insurance service providers. ARNOLD YEUNG, Founder and CEO of AMG FINANCIAL GROUP speaks on the challenges the industry faces in its quest to exceed market expectations.

Arnold Yeung, Founder and CEO of AMG FINANCIAL GROUP.

“The days when the consumer took things at face value is long gone,” says Arnold Yeung, founder of the established AMG FINANCIAL GROUP in Hong Kong. He should know after more than a decade of serving Asia’s most sophisticated and market-savvy consumer base.

“Today, your average insurance service buyer has a wide choice of providers. Buyers want to know your (the company’s) heritage, track record of claim settlement, customer service quality, customer retention ratio, on-line presence etc. Insurance buying has to be stress-free, convenient, reliable and cost-effective. Further, the industry never shrinks and with each passing year, more providers enter the market so the competition is fast and furious. Furthermore, while many companies are automating to streamline the sales and service process, the fact remains that it takes a human being to listen and understand a human being. Given the shortage of fresh blood entering the industry, the path ahead is even narrower. But persevere we must, not merely because the market can be expanded intelligently, but because the nature of the business lends itself to serving your fellow man and there can be no greater calling.”

“Once you gain a customer’s trust you can cater to most of their needs. The only precaution is you have to be consistent. It takes years to build a reputation and a split-second to lose it.” – Arnold Yeung

Inward Fork

“Life’s taught us that challenges can be viewed from a fear standpoint or can be accepted as blessings,” Yeung says. “So, while the challenges are broadly twofold – people and competition – I see opportunity in both. The industry has traditionally not spent enough time and resources to nurture the caring aspect of financial advisers and this is important. It is innate human nature to empathize and when a financial adviser finds purpose in seeing how insurance is helping the needy, he/she grows passionate about work. Then there is continuity in care and a new level of customer service is born. Another reason talent is showing less interest in this sector is probably because there is a shortage of self-grown, market-tested managers – professionals who are able and willing to pass on to new entrants a rich and varied tapestry of experience that will serve as a blue-print for their own growth. Students tend to appreciate practical knowledge and that’s where AMG has succeeded. I started this company with less than a fist-full of colleagues and we have grown on the basis of the experience and knowledge we’ve shared along the way.”

“Next, is the issue of competition. It’s never been new and we have to view it as a driving, motivating factor that makes us re-think our quality and strive to constantly improve. This should not come as a surprise to our sector. Our job is to ask the fundamental question – how can I help you?”

Filling a Need

According to Yeung, reputation is vital in an industry that faces strong regulation for a reason. He sees a direct link between reputation and opportunity in a market that wants the same.

“Buyers are willing to pay the price for quality and when they find a provider who delivers on promises and has an enviable customer services record. Then they go with this tried and tested provider down every path of life. A satisfied customer has many needs that he/she may not even be aware of. A good customer does not merely buy life and medical insurance but a whole range of other financial products like investment, annuity, savings, motoring, travel, home and contents insurance etc. Once you gain a customer’s trust you can cater to most of their needs. The only precaution is you have to be consistent. It takes years to build a reputation and a split-second to lose it.”

Turning Point

At the time of writing, the wave of crypto currencies rose to a new height sending investors into raptures of delight. AMG’s portfolio/wealth management business has long since rested on the tenets of non-speculation and steady growth so Yeung may now find himself battling the proverbial band-wagon syndrome.

“Yes, investors don’t want to miss a boat that could be a life changer but then again, the question of sustainability remains. While, I am not against a moderate view of the new paradigm shift, I have a duty to guard my customers from speculative financial exploits that we are all yet to be convinced of. I’d rather my customers be safe than sorry so we will continue to be conservative and embrace the safe and effective regular savings products and conventional financial instruments.”

Changing Faces

“Our markets are changing from two angles. Firstly, we have more people from different places living in Hong Kong, especially from Mainland China. With huge opportunity come bigger responsibilities which include educating these customers and helping get the best possible products that fits their needs. Given the people are often professionally transferred across Asia, there is a question of portability of coverage etc which have to be addressed often across the great cultural divide,” he explains.

Secondly, we have some customers who have their own ‘new world’ view of future, insurance and savings. Thinking of creating apps to earn themselves online billions and no need to plan for the future. In most cases, life is passing them by and if we don’t help, some of them may have left for their retirement is a huge safe filled with dream dollars which will be of no good to anyone.”

“Educating these markets will be a huge but enjoyable challenge simply because the intent to serve and help providing people with the means to cope with uncertainty is reward in itself. This has been our mission from day 1 and the reason why AMG FINANCIAL GROUP is today, one of Hong Kong’s most respected and preferred service providers. I would like to conclude by thanking all my customers and colleagues without whose understanding, support and encouragement we may not have won the prestigious HKMVC Award again this year. Hong Kong may well look forward to a bright and service-oriented future with AMG.”